Facility Services: Tracking Wage Inflation Trends with May Hourly Earnings Data

Research evidence excerpt

Facility Services: Tracking Wage Inflation Trends with May Hourly Earnings Data

Global Research

15 July 2026ab

US Business Services Equities

AmericasFacility Services: Tracking Wage Inflation Trends

with May Hourly Earnings Data Industrial Services

Joshua Chan, CFA

Analyst

joshua.chan@ubs.com

May Hourly Earnings Data +1-212-713 9957

May hourly earnings data for various business services sub-sectors was released recently. Karandeep Singhania

We use this data as proxy for wage inflation across facility services, with labor typically a Associate Analyst

meaningful portion (~30-70%) of cost of services for our covered facility services karandeep.singhania@ubs.com

companies. Overall in May, wage inflation accelerated across majority of our tracked +1-212-713 4211

verticals, however, given some sharper moves across certain verticals (Uniform & Linen Brianna Kamdoum

Supply, Testing Laboratories), the average tracked wage inflation moderated to +4.1% Associate Analyst

from +4.5%. We continue to monitor wage dynamics, which have been a source of brianna.kamdoum@ubs.com

stability and margin leverage for most business services companies in recent years. See +1-212-882 5027

additional charts including time series data starting on page 3.

Pest Control Services (ROL)

Pest Control Services hourly earnings were +0.6% yoy in May, up from -1.2% in April

and positive for the first time since December 2025. The L3M average was -0.9%, up

from -2.0% in April.

Janitorial Services (ABM)

Janitorial Services hourly earnings growth moderated to +2.2% yoy in May from +3.3%

in April, reaching lowest level in over two years and much below 2025 levels. The L3M

average was slightly lower but rounded to +2.7% similar to last month.

Child Day Care Services (BFAM/KLC)